Setting a maximum salary on which an exit payment can be based, potentially at £80,000

Requiring employer funded early access to pension to be limited or ended, through measures such as:

* capping the amount of employer funded pension ‘top ups’ to no more than

the amount of redundancy lump sum to which an individual would be entitled;

*remove employer top ups altogether;

*and/or increase the minimum age at which an employee is able to receive

an employer funded pension top up, to be more closely with the individual’s

Normal Pension Age.

5.3

MCO believes that a package of reforms can be developed which aligns the

principles set out above of encouraging exits earlier in the process with the Government’s wider consultation. The preferred way of achieving a similar

level of reforms which should better meet the Civil Service priorities is as follows:

set the standard tariff to three weeks’ per year of service;

set the Voluntary Exit cap at 18 months’ salary; set the Voluntary Redundancy cap to 12 months; and set the Compulsory Redundancy cap to 9 months

.

only allow employer funded top up for early access to pension where the member has reached the minimum pension age for a new entrant to the

scheme (i.e.55 at a minimum);

to introduce an absolute cap on CSCS payments at £95,000 in line with proposed legislation; and

set notice periods for all exits from the Civil Service under the CSCS at 3 months (notice periods are not set under the CSCS but clearly have an impact on total costs).

5.4

These two packages would save just over a third on the current costs of exits and this level of reform is within the range of the MCO’s target for cost savings in the CSCS

The RCTU will now undertake a direct consultation with members over how to respond to the proposals. We urge you to read the document in full. Please frame your comments around the “response document” questions but you are also invited to make any other pertinent comments you feel are appropriate.

This is an extremely vital and important subject for all members in RCTU and you are encouraged to take the time to read the proposals and respond. The proposals here, if enacted, will have major consequences on your future.